Thailand Advances Draft Rules for Bitcoin and Ether ETFs

Thailand’s Securities and Exchange Commission has progressed its framework for locally listed Bitcoin and Ether ETFs, shifting from broad proposed principles to detailed draft regulations. The SEC is now seeking public feedback on two consultation papers, one covering the ETF rules themselves and another addressing qualification standards for foreign digital asset custodians.

ETFs to Trade Exclusively on Thai Stock Exchange

Under the proposed framework, Bitcoin and Ether would be the only eligible crypto assets for these ETFs, which would trade solely on the Stock Exchange of Thailand. Each fund would need to maintain at least 80% net exposure to its underlying asset throughout the year, and mutual and private funds would be permitted to invest in these products alongside existing foreign crypto ETF options.

Custody Rules Refined After Industry Feedback

Following an earlier consultation in April, the SEC revised its custody approach based on industry input. Onshore digital asset custodians will remain the primary choice for crypto ETFs, though the regulator may allow qualified foreign custodians when appropriate. Foreign custodians serving investment funds will need to meet strict regulatory and investor protection standards. Public comments on both proposals will be accepted until September 20.